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Why Nasdaq-100 exposure in a 401(k)?

The rest of the world has already embraced the Nasdaq-100 Index as a core source of equity market exposure, and it is clear that investors are allocating to index funds that track this benchmark, with more than $600 billion following it.2

What is NQQQX?

NQQQX is an institutional-class mutual fund specifically designed for defined contribution (DC) plan menus. It provides low-cost exposure to the Nasdaq-100 Index®, the benchmark for the 100 largest non-financial companies listed on the Nasdaq.

Who is NQQQX for?

Built with institutional channels in mind, NQQQX is intended for DC plans and the professional fiduciaries who support them, including retirement plan advisors, 401(k) plan sponsors, investment committees.

Featured In

Featured in

Innovation & the retirement landscape

The rest of the world has already adopted the Nasdaq-100 Index as a core equity exposure.

Plan participants are increasingly looking for access to innovation-oriented companies in their retirement investments, without losing sight of diversification and risk management. 

Almost 45% of participants report owning a product that tracks the Nasdaq-100 in their portfolio.3 

Nearly 80% of plan participants report that having access to a Nasdaq-100 Index product is important, with ~20% ranking it extremely important.3 

Despite this demand, Nasdaq-100 Index mutual funds represent less than 1% of all 401(k) assets across more than 700,000 plans. This is a significant underrepresentation relative to the S&P 500 and other Large Cap Growth benchmarks.2 

Key insights from our Annual Nasdaq-100 Retirement Plan Survey indicate participants prioritize innovation, track record, and the simplicity of the Nasdaq-100 across all age bands surveyed.3 

Awards & Recognition2 

10 Best Mutual Funds List for 2024

Best Index Fund For 2024

Featured in Kiplinger’s Mutual Fund Guide for 2024

THE FI360 FIDUCIARY SCORE®

NQQQX is a 1st Quartile Fund for period ending 3/31/26.

A 0-25 score indicates the first quartile.

The fi360 Fiduciary Score® is a peer percentile ranking of an investment against a set of quantitative due diligence criteria selected to reflect prudent fiduciary management. The fi360 Fiduciary Score should not be used as the sole source of information in an investment decision. Visit www.fi360.com/fi360-Fiduciary-Score for the complete methodology document.

History of Outperformance

Over the last 30 years, the Nasdaq-100 Index has demonstrated a history of outperformance. The S&P 500 Index has grown over 1,800% while the Nasdaq-100 Index has grown over 5,000% during that time period.

The integration of Al technology, revolutionizing nearly every industry, bolsters the Nasdaq-100 index's capability for continuous innovation and highlights its strong potential for future growth. With its foundational focus on innovation, the Nasdaq-100 is well-positioned to navigate future uncertainties and sustain its long-term growth trajectory.

  • 5 Years
  • 10 Years
  • 20 Years
  • 30 Years


Source: Bloomberg L.P. as of 12/31/2025. The above chart is presented for the purpose of illustrating the long-term performance of large-cap growth markets versus the broader market over time. Index performance is not indicative of fund performance nor is it an indication of how a fund could or will perform. The S&P 500® Index is a market-capitalization-weighted index that measures the performance of the common stocks of 500 leading U.S. companies. Past performance does not guarantee future results and current performance may be lower or higher than the performance data quoted. It is not possible for individuals to invest directly in an index. Performance figures for an index do not reflect deductions for sales charges, commissions, expenses or taxes.

Click here for standardized performance.

Myth Buster: Nasdaq-100 is too volatile for a 401(k)

This chart examines the implied volatility for the Nasdaq-100 versus the S&P 500 over the last 20 years by looking at the CBOE indexes tied to each (VXN and the VIX, respectively). This similar volatility is impressive considering the Nasdaq-100’s returns and outperformance.

For another index comparison, let’s look at the Russell 1000 Growth Index - the average standard deviation of the monthly returns of over the last decade of the Nasdaq-100 is 18.33 vs. the Russell 1000 Growth of 17.26.

Source: Bloomberg L.P. as of 12/31/2025. The above chart is presented for the purpose of illustrating the long-term volatility of large-cap growth markets versus the broader market over time. The VNX is the CBOE NASDAQ-100 Volatility Index and the VIX is the CBOE Volatility Index, a popular measure of the stock market's expectation of volatility based on S&P 500 index options.

Shelton NQQQX

Add innovation-oriented exposure to a DC lineup

Many participants seek simple ways to access innovation-led companies within their retirement accounts. NQQQX provides Nasdaq-100 Index-based exposure that can be evaluated as part of a diversified menu designed for long-term goals. We can help you review platform availability, share plan-friendly materials, and discuss where this option may fit within your lineup.

Book A Meeting

How to Add NQQQX to a 401(k) Plan Menu

Confirm Platform Availability

Verify availability on your recordkeeper platform, or ask our team to help confirm access.

Review Plan Materials

Assess the prospectus, fact sheet, and standardized performance against your IPS criteria.

Assess Lineup Fit And Document Rationale

Evaluate role alongside U.S. large-cap core and other growth allocations, then document your reasoning.

Implement And Educate Participants

Use participant-friendly materials that explain the fund's purpose, risks, and long-term context.

Monitor As Part Of Ongoing Review

Track fees, index tracking, risk, and participant utilization on a regular review cycle.

Common Questions

With institutional pricing and availability on major recordkeeping platforms, NQQQX can support advisors and plan committees as they evaluate modern building blocks for participant lineups. The large-cap growth strategy with a high concentration in technology stocks, NQQQX offers high return potential alongside higher short-term volatility compared to the broader market. Plan committees and fiduciary advisors typically evaluate NQQQX as a strategic complement to core U.S. equity exposure, not a replacement.

The Nasdaq-100 Index can be an appropriate option within a 401(k), depending on the plan’s objectives, participant demographics, and the role the option plays within a diversified lineup.  Plan sponsors and investment committees typically evaluate factors such as volatility, sector concentration, fee structure, and how Nasdaq-100 exposure complements core U.S. equity allocations.

NQQQX is a mutual fund share class designed for plan lineups and institutional contexts, while ETFs trade intraday on exchanges. Differences may include trading mechanics, how participants access the option within a recordkeeping platform, and how the investment is operationalized inside a DC plan menu.

Key considerations include the potential for higher volatility relative to broad-market options, sector concentration risk (particularly in technology), and tracking error versus the benchmark due to fees/expenses and portfolio mechanics. Time horizon and diversification context matter.

Retirement plan sponsors often position Nasdaq-100 exposure as a strategic complement to core, broad U.S. equity investments (such as  S&P 500 index funds) rather than a replacement. Committees may review asset overlap and concentration, risk and volatility, and menu diversification, ensuring the combined lineup supports diversified participant outcomes across time horizons.

Availability can vary by platform and share class. Contact us to confirm NQQQX availability on your bookkeeper platform and request assistance with evaluation and implementation. .

Contact Us for More Information

We have a team of professionals dedicated to supporting the needs of our advisor clients.

WA OR CA NV ID MT AK HI WY UT CO AZ NM TX OK AR KS NE SD ND MN IA MO WI MI IL IN OH KY TN WV MS AL GA FL SC NC VA LA DE MD PA NY ME VT NH MA RI CT NJ
Laura Bevill, CAIA
West Region Laura Bevill, CAIA Director, Advisor Services
Jason Shidler
Central Region Jason Shidler Director, Advisor Services
Matt Gunter
Great Lakes Region Matt Gunter Director, Advisor Services
Jeff Medina
Southeast Region Jeff Medina Director, Advisor Services
Josh Fudge
Northeast Region Josh Fudge National Sales Manager
West — Laura Bevill, CAIA▼
Central — Jason Shidler▼
Great Lakes — Matt Gunter▼
Southeast — Jeff Medina▼
Northeast — Josh Fudge▼
Institutional Sales — Tony Brown ▼

Important Information

Investors should consider a fund’s investment objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, visit https://www.sheltoncap.com/wp-content/uploads/2025/11/Prospectus-1.1.26.pdf or call (800) 955-9988. A prospectus should be read carefully before investing.

An investment in the Fund involves risk, including possible loss of principal. Fund information is not intended to represent future portfolio composition. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities.

1Received an Overall Morningstar Rating of 4 stars among 998 Large Growth funds, based on 3/31/2026.

The fund’s Morningstar three-, five-, ten-year ratings respectively, 4 stars, 4 stars, 5 stars among 998, 937, 763 funds.

2Nasdaq

3We surveyed over 1,000 U.S. 401(k) plan participants with a balanced reflection of the U.S. Census for gender and age range. This study was conducted by Centiment between February 10 and February 14, 2025. Survey respondents were 18 years or older, with full-time active employment with the median household income in the US or higher.

4For important ranking criteria, please visit Forbes.com, Time.com, and Kiplinger.com, which reflect the NASDX share class.

The Fund invests in the largest non-financial companies that are traded on the Nasdaq Stock Market. They are currently concentrated in the technology sector which has been among the volatile sectors of the U.S. stock market. During a declining stock market, this fund would lose money. It would potentially lose more money than other large cap funds.

Important Information for Morningstar® Rating

Nasdaq®, Nasdaq-100® and Nasdaq-100 Index® are trade or service marks of The Nasdaq Stock Market, Inc. which with its affiliates are the “Corporations”) and are licensed for use by the Fund. The Fund has not been passed on by the Corporations as to their legality or suitability. The Fund is not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the Fund. Diversification does not assure a profit or protect against lost in a declining market.

It is not possible for individuals to invest directly in an index. Performance figures for an index do not reflect deductions for sales charges, commissions, expenses or taxes.

Shelton Funds are distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.

INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.

Available Sites

For Institutions and Consultants

The information contained in this section of Shelton Capital Management’s website is intended for use by Institutional Investors in the United States only. It is not intended for use by non-U.S. entities or retail investors. "Institutional Investor" means any:

  • person described in FINRA Rule 4512(c), regardless of whether that person has an account with a FINRA member, includes;
  • a bank, savings and loan association, insurance company or registered investment company;
  • an investment adviser registered either with the SEC under Section 203 of the Investment Advisers Act or with a state securities commission (or any agency or office performing like functions) or;
  • any other person (whether a natural person, corporation, partnership, trust or otherwise) with total assets of at least $50 million;
  • governmental entity or subdivision thereof; employee benefit plan that meets the requirements of Section 403(b) or Section 457 of the Internal Revenue Code and has at least 100 participants, but does not include any participant of such a plan;
  • qualified plan, as defined in Section 3(a)(12)(C) of the Act, that has at least 100 participants, but does not include any participant of such a plan; FINRA member or registered associated person of such a member; and, person acting solely on behalf of any institutional investor.

By closing this window and entering the website, you expressly acknowledge that you have checked and confirmed that you are accessing this site from the United States for purposes of acquiring information as an Institutional Investor as defined above.

For Financial Professionals

The information contained in this section of Shelton Capital Management’s website is intended for use by Institutional Investors in the United States only. It is not intended for use by non-U.S. entities or retail investors. "Institutional Investor" means any:

  • person described in FINRA Rule 4512(c), regardless of whether that person has an account with a FINRA member, includes;
  • a bank, savings and loan association, insurance company or registered investment company;
  • an investment adviser registered either with the SEC under Section 203 of the Investment Advisers Act or with a state securities commission (or any agency or office performing like functions) or;
  • any other person (whether a natural person, corporation, partnership, trust or otherwise) with total assets of at least $50 million;
  • governmental entity or subdivision thereof; employee benefit plan that meets the requirements of Section 403(b) or Section 457 of the Internal Revenue Code and has at least 100 participants, but does not include any participant of such a plan;
  • qualified plan, as defined in Section 3(a)(12)(C) of the Act, that has at least 100 participants, but does not include any participant of such a plan; FINRA member or registered associated person of such a member; and, person acting solely on behalf of any institutional investor.

By closing this window and entering the website, you expressly acknowledge that you have checked and confirmed that you are accessing this site from the United States for purposes of acquiring information as an Institutional Investor as defined above.

Individual Investors

The information contained in this section of Shelton Capital Management’s website is intended for use by Institutional Investors in the United States only. It is not intended for use by non-U.S. entities or retail investors. "Institutional Investor" means any:

  • person described in FINRA Rule 4512(c), regardless of whether that person has an account with a FINRA member, includes;
  • a bank, savings and loan association, insurance company or registered investment company;
  • an investment adviser registered either with the SEC under Section 203 of the Investment Advisers Act or with a state securities commission (or any agency or office performing like functions) or;
  • any other person (whether a natural person, corporation, partnership, trust or otherwise) with total assets of at least $50 million;
  • governmental entity or subdivision thereof; employee benefit plan that meets the requirements of Section 403(b) or Section 457 of the Internal Revenue Code and has at least 100 participants, but does not include any participant of such a plan;
  • qualified plan, as defined in Section 3(a)(12)(C) of the Act, that has at least 100 participants, but does not include any participant of such a plan; FINRA member or registered associated person of such a member; and, person acting solely on behalf of any institutional investor.

By closing this window and entering the website, you expressly acknowledge that you have checked and confirmed that you are accessing this site from the United States for purposes of acquiring information as an Institutional Investor as defined above.

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